Press Releases
02/28/2022
Attorney General Tong urges Federal Trade Commission to Create Robust Rule Outlawing Impersonation Scams
(Hartford, CT) — Attorney General William Tong as part of a bipartisan coalition of 43 attorneys general has called on the Federal Trade Commission to adopt a national rule to target impersonation scams.
A comment letter from the attorneys general raises concerns about the plethora of impersonation scams targeting consumers and the current lack of a national rule to outlaw these fraudulent acts and protect Americans.
Attorneys general serve as the front-line defense against impersonation scams, seeing first-hand the pervasive problem these acts create.
“Impersonation scams take many forms and the damage they cause to consumers, small businesses and charities can be devastating. The FTC must adopt strong national rules targeting impersonation scams that will deter bad actors and allow states to hold scammers accountable,” Attorney General Tong said.
As illustrated in the letter, impersonation scams take on many forms:
Impersonation of government entities: Fraudsters claim to be from or affiliated with a government agency to persuade victims of the urgency to provide payment to obtain licensing or certificates in document preparation or regulatory compliance scams.
In 2020, Attorney General Tong announced a settlement with ANS, INC. d/b/a Workplace Compliance Services resolving a case involving allegations of government imposter fraud. The Michigan based corporation sent mailings closely resembling official government forms to Connecticut LLCs offering to assist with their annual report filings with the Secretary of State. This led a number of Connecticut businesses to believe the communication was from the government, not a private company, and they were required to use ANS’s services in order to remain in compliance with state law.
Also in 2020, a company calling itself “CT Certificate Service” sent mailings to Connecticut businesses suggesting they must pay a fee of $112.50 to CT Certificate Service in order to obtain copies of their "Connecticut Certificate of Existence." In Connecticut, a certificate of existence is not a required document.
Business impersonation: These are scams in which fraudsters claim to be working directly for an actual business or as a third party endorsed by the business. Common examples include tech scams in which the imposters claim they are contacting the victim on behalf of companies such as Microsoft or Apple to assist with a ransomware or technology issue.
For example, consumers in Connecticut have reported receiving calls purporting to be from Eversource and threatening imminent shut-off of electricity if a payment was not made. The scammers demanded to be paid with gift cards and had sensitive information, including the customer’s account numbers and personal details, leading several consumers to believe they were actually speaking with an employee of Eversource.
Person-to-person deceptions: Grandparent scams, romance scams and others use personal information to make a connection with victims. Whether claiming a grandchild is in urgent need of money or creating a fake profile to gain the trust of someone on a social media or dating site, these impersonation scams account for thousands of complaints to attorneys general each year.
Though the methods may vary, impersonation scams cause injury to consumers who lose money, drain resources from regulators tasked with protecting the public, and cause confusion and loss of trust in government agencies and services.
“There is a pressing need for FTC rulemaking to address the scourge of impersonation scams impacting consumers across the United States,” the letter states. “A national rule that encompasses and outlaws such commonly experienced scams discussed [in our letter] would assist attorneys general and their partners in reducing consumer harm, maximizing consumer benefits, and holding bad actors to account.”
A robust national standard outlawing impersonation scams should:
- Deter bad actors and reduce consumer harm.
- Provide needed clarity on what conduct constitutes impersonation, since government and business impersonation scams can range from overt pretense to misleading subtlety.
- Deprive bad actors of the excuse that they were allegedly not aware their activities were illegal in some jurisdictions as opposed to others.
- Provide more opportunities for the states to collaborate with the FTC on multistate enforcement actions against imposter scammers.
- Allow states to enforce their own standards, free of any preemption by a federal rule.
The FTC should publish additional consumer and business education materials to help prevent consumers from becoming victims of impersonation fraud. These efforts must serve as a complement to a strong regulation with a robust enforcement scheme, not as an alternative.
“The attorneys general hope to continue working with the FTC and other partners to sound the alarm on impersonation scams,” the letter states.
The letter was led by Florida, Iowa, Mississippi, Pennsylvania, and Tennessee. Attorney General Tong was joined by the attorneys general of Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
To report a scam or instance of fraud, contact the Office of the Attorney General at 860-808-5318 or file a complaint with the office at https://www.dir.ct.gov/ag/complaint.
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Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
Consumer Inquiries:
860-808-5318
attorney.general@ct.gov